One of the biggest decisions you’ll make when choosing a home loan is whether to go with a fixed or variable interest rate.
In 2025, as rates begin to stabilise after years of fluctuations, more homeowners are wondering which option offers better value and peace of mind.
At Gardian Finance, we help clients weigh up the pros and cons to find a loan structure that fits their lifestyle, not just their lender’s checklist. Here’s what to consider.
đź’° What Is a Fixed Rate Home Loan?
A fixed rate loan locks in your interest rate for a set period — usually one to five years.
This means your repayments stay exactly the same during that time, regardless of market changes.
Benefits:
Certainty over your repayments
Easier budgeting and financial planning
Protection if interest rates rise
Things to consider:
Limited flexibility — many fixed loans restrict extra repayments
Break fees may apply if you refinance early
You may miss out on savings if rates drop
🔄 What Is a Variable Rate Home Loan?
A variable rate loan moves with the market, so your interest rate (and repayments) can go up or down over time.
Benefits:
Flexibility to make extra repayments
Easier to refinance or switch lenders
Benefit if rates decrease
Things to consider:
⚖️ The Best of Both Worlds: Split Loans
Many borrowers choose to split their loan — fixing part of it and leaving the rest variable.
This gives you some repayment stability while still keeping flexibility and the chance to benefit from rate changes.
A broker can help you find the right balance based on your goals, risk comfort, and financial situation.
đź‘‹ How Gardian Finance Can Help
Choosing between fixed, variable, or split loans isn’t always straightforward. Our team at Gardian Finance can help you:
Compare lenders and current rate offers
Model repayment scenarios for each option
Find a structure that aligns with your goals and cash flow
Review your loan regularly to make sure it stays competitive
Ready to Find the Right Fit?
Whether you’re buying, refinancing, or just reviewing your current loan, Gardian Finance can help you decide which rate option suits you best in 2025.
📱 (07) 4953 2799
đź’»
www.gardian.com.auđź“Ť 73 Wood St, Mackay
